The percentage of the labor force that is unemployed, measuring US labor market health. Released on the first Friday of each month alongside NFP. • Below 3.5%: Full employment — wage pressure, inflation concerns • 3.5–4.5%: Healthy labor market • 4.5–6%: Economic slowdown signals • Above 6%: Recessionary levels (hit 14.7% during COVID in 2020) The 'Sahm Rule': When the 3-month moving average of unemployment rises 0.5pp above its 12-month low, it signals a recession. Historically has an extremely high accuracy rate.